Here's your cash flow crisis:  You pay suppliers in 30 days. Clients pay you in 60-90 days. That 30-60 day gap is draining your working capital and forcing you onto expensive credit lines. The opportunity most contractors miss:  A mid-sized GC negotiated Net 45 terms with just three suppliers and freed up $180,000 enough to fund two additional projects without touching their line of credit. What you'll master today:  The exact frameworks to negotiate Net 60, Net 90, or milest

Last month, a mid-sized general contractor in Houston paid their concrete supplier twice. $18,000 disappeared before accounting caught the error. It wasn't a one-time mistake. Duplicate payments cost construction companies an average of $900 to $2,500 every single month. For a typical contractor processing 200–300 invoices monthly, that's $10,800 to $30,000 in lost profit annually. Here's why you should care: Unlike other business expenses you can control, duplicate payments

Many successful subcontractors face a serious cash flow crisis, not because their projects are unprofitable, but because they can’t manage the timing gap between when they need to pay bills and when they get paid. This issue becomes especially critical when working with general contractors (GCs) who hold back retainage (a percentage of payments) for months, further complicating the situation. Take the example of a successful electrical contractor, he had profitable projects a

Cash Flow  is the lifeblood of any construction business. Even the most profitable projects can face crippling financial constraints if cash is not properly managed. The biggest challenge often isn’t generating revenue but keeping working capital flowing. Long payment cycles from clients, coupled with inefficient internal processes, can quickly choke your liquidity and stall growth. But what if we told you that Accounts Payable (Construction AP) the routine task of paying bi

In the fast paced construction industry, managing Accounts Payable (AP) efficiently is crucial for maintaining strong supplier...

In construction, effective management of subcontractor and supplier payments can determine the success of a project. Missed payments,...

Construction bookkeeping is more than simply numbers; it is about ensuring that every dollar spent benefits the project's success....

Contractors and construction firm owners must efficiently manage their accounts payable. Whether you're handling vendor bills, tracking...

Managing relationships with vendors well is important for any building company that wants to improve its accounts payable processes....

Are you feeling overwhelmed by the constant influx of invoices, payment deadlines, and vendor inquiries in your construction business? If so, you're not alone. Managing the accounts payable process   for a construction company can be a daunting task. But it's crucial for maintaining healthy cash flow and vendor relationships. In this article, we'll explore five proven strategies to streamline your construction accounts payable process. Also, making it more efficient, organiz

Here's a comparison table that highlights some key differences between accounts payable and receivable

In the construction industry, Accounts Payable (AP) is more than just paying bills; it’s a critical lever for controlling cash flow and maximizing profitability. Too often, contractors manage AP reactively, focusing only on paying bills when customer payments come in, leaving vendor payments to be handled later. This reactive approach is a cash flow time bomb: it jeopardizes key vendor relationships, makes you miss early payment discounts, and introduces job costing errors a